To better understand our environmental impact and increase the transparency of our operations, we have voluntarily tracked and reported our greenhouse gas (GHG) emissions since 2009. In 2018, we improved our CO2e intensity ratios for the seventh consecutive year.
While we are proud of these year-over-year improvements, we continue to seek opportunities to further reduce our emissions intensity through partnerships and agreements with companies such as Red Rock Biofuels. In July 2018, Red Rock Biofuels broke ground on a state-of-the-art biorefinery in Lakeview, Oregon, which is expected to convert woody biomass into lower carbon fuels. Southwest has committed to purchase three million gallons of sustainable aviation fuel per year from this facility, with the first fuel delivery anticipated in 2020.11) The 2018 Southwest Airlines One Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s Vision; (ii) the Company’s financial position, outlook, goals, targets, strategies, plans, expectations, and projected results of operations, including specific factors expected to impact the Company’s results of operations; (iii) the Company’s network, growth, and capacity plans, strategies, opportunities, and expectations; (iv) the Company’s expectations and goals with respect to enhancing Shareholder value and returning value to Shareholders; (v) the Company’s fleet plans, strategies, and expectations, including its fleet modernization initiatives, and the Company’s related financial and operational expectations; (vi) the Company’s operational initiatives and related plans and expectations, including with respect to its technology and innovation initiatives; and (vii) the Company’s other initiatives, including construction, safety, fuel, and environmental initiatives, and related plans and expectations. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) changes in demand for the Company’s services and other changes in consumer behavior; (ii) the impact of a continually changing business environment, economic conditions, fuel prices, actions of competitors (including without limitation pricing, product, scheduling, capacity, and network decisions, and consolidation and alliance activities), and other factors beyond the Company’s control, on the Company’s business decisions, plans, strategies, and results; (iii) the impact of governmental actions and governmental regulations related to the Company’s operations, in particular with respect to the grounding of the Company’s 737 MAX 8 fleet; (iv) the Company’s dependence on third parties, in particular with respect to its fleet and technology plans and expectations, and the impact on the Company’s operations and results of operations of any related third party delays or non-performance; (v) the Company’s ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vi) the Company’s ability to timely and effectively prioritize its initiatives and related expenditures; (vii) the impact of labor matters on the Company’s business decisions, plans, strategies, and costs; (viii) changes in aircraft fuel prices, the volatility of commodities used by the Company for hedging jet fuel, and any changes to the Company’s fuel hedging strategies and positions; and (ix) other factors, as described in the Company’s filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018.
The commitment to purchase lower carbon renewable fuel is just one way we are working to reduce our emissions intensity as our business continues to grow.
See Footnotes: 66) An RPM is one paying Passenger flown one mile. Also referred to as “traffic,” which is a measure of demand for a given period., 33) A revenue ton mile (RTM) is one ton of revenue traffic (passenger and cargo) transported one mile., 77) An available seat mile (ASM) is one seat (empty or full) flown one mile. Also referred to as “capacity,” which is a measure of the space available to carry Passengers in a given period.